Harris Corp

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HRS : NYSE : Technology
$131.8 up 0.74 | 0.56%
Today's Range: 131.06 - 131.89
Avg. Daily Volume: 705600.0
09/22/17 - 12:31 PM ET

Financial Analysis


HARRIS CORP's gross profit margin for the fourth quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. HARRIS CORP has weak liquidity. Currently, the Quick Ratio is 0.59 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 4.18% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q4 FY17 Q4 FY16
Net Sales ($mil)1542.01533.0
EBITDA ($mil)362.0372.0
EBIT ($mil)295.0284.0
Net Income ($mil)131.0160.0


Balance Sheet Q4 FY17 Q4 FY16
Cash & Equiv. ($mil)484.0501.0
Total Assets ($mil)10090.011996.0
Total Debt ($mil)4030.04517.0
Equity ($mil)2928.03056.0


Profitability Q4 FY17 Q4 FY16
Gross Profit Margin38.2640.18
EBITDA Margin23.4724.26
Operating Margin19.1318.53
Sales Turnover0.580.5
Return on Assets5.482.7
Return on Equity21.7819.99
Debt Q4 FY17 Q4 FY16
Current Ratio1.081.33
Debt/Capital0.580.6
Interest Expense42.044.0
Interest Coverage7.026.45


Share Data Q4 FY17 Q4 FY16
Shares outstanding (mil)119.63124.64
Div / share0.530.5
EPS1.351.13
Book value / share24.4824.52
Institutional Own % n/a n/a
Avg Daily Volume706011.0900856.0

Valuation


BUY. HARRIS CORP's P/E ratio indicates a discount compared to an average of 27.75 for the Communications Equipment industry and a value on par with the S&P 500 average of 24.88. For additional comparison, its price-to-book ratio of 5.08 indicates a significant premium versus the S&P 500 average of 3.10 and a significant premium versus the industry average of 3.48. The price-to-sales ratio is above the S&P 500 average, but well below the industry average. The valuation analysis reveals that, HARRIS CORP seems to be trading at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
HRS 24.27 Peers 27.75   HRS 26.12 Peers 16.68

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

HRS is trading at a discount to its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

HRS is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
HRS 18.27 Peers 647.17   HRS 1.39 Peers 0.75

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

HRS is trading at a significant discount to its peers.

 

Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

HRS trades at a significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
HRS 5.08 Peers 3.48   HRS 5.13 Peers -8.88

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

HRS is trading at a significant premium to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

HRS is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
HRS 2.52 Peers 3.09   HRS -1.54 Peers 7.49

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

HRS is trading at a discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

HRS significantly trails its peers on the basis of sales growth

 

 

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